TORONTO, February 4, 2015 -- Toronto Real Estate Board President Paul
Etherington announced that, in January 2015, TREB Commercial Network Members
reported 347,046 leased square feet of industrial, commercial/retail and office
space within the TREB market area for which pricing was disclosed on a per
square foot net basis. This result was down by 19.7 per cent compared to
431,941 square feet of combined space leased in January 2014. Over
three-quarters of leased space was accounted for by the industrial market
segment.

The average lease rate for
industrial space was virtually unchanged compared to a year ago. Both the
commercial/retail and office lease rates were up substantially on a
year-over-year basis, but most of this increase was the result of a
compositional shift in the size of properties leased this year compared to last.
Last year, a greater share of larger properties were leased. Larger
properties tend to lease for less on a per square foot net basis.

“The next 12 months will be an
interesting period of time for commercial real estate in the Greater Toronto
Area. On the one hand, we have the potential for the drop in oil prices
to impact the Canadian economy as a whole. On the other hand, we have the
potential positive impacts of the lower Canadian dollar on exports from
southern Ontario. As we move toward the spring, we should have a better
indication of the net effects on commercial real estate markets in the GTA,”
said Mr. Etherington.

The number of industrial,
commercial/retail and office sales in January 2015, at 49, was almost unchanged
compared to January 2014 when 50 sales were reported. The year-over-year
change in average sale prices reported on a per square foot basis were
mixed. The average sale price for industrial properties was down compared
to January 2014, but this was largely due to some very large properties
changing hands this year. Larger properties generally sell for less on a
per square foot basis. Commercial/retail and office selling prices were
both up compared to last year

January 2015: Per Square Foot Net Commercial Leasing Summary

Lease Transactions Completed on a Per Square Foot Net
Basis with Pricing Disclosed on TorontoMLS

Leased Square Feet

Average Lease Rate

Jan.
2015

Jan.
2014

%
Change

Jan.
2015

Jan.
2014

%
Change

Industrial

266,575

356,440

-25.2%

Industrial

$5.20

$5.21

-0.1%

Commercial

42,288

36,005

17.5%

Commercial

$19.17

$15.65

22.5%

Office

38,183

39,496

-3.3%

Office

$13.71

$10.45

31.2%

Total

347,046

431,941

-19.7%

Source: Toronto Real Estate Board

January 2015: Commercial Sales Completed with Pricing Disclosed
on TorontoMLS

Sales
(Price Disclosed)

Avg.
Sale Price Per Sq. Ft. (Pricing Disclosed)

Jan.
2015

Jan.
2014

%
Change

Jan.
2015

Jan.
2014

%
Change

Industrial

22

20

10.0%

Industrial

$80.88

$135.01

-40.1%

Commercial

18

24

-25.0%

Commercial

$208.34

$193.78

7.5%

Office

9

6

50.0%

Office

$313.53

$278.83

12.4%

Total

49

50

-2.0%

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